1. PRESENTED BY
GROUP-5
SARVPREET BHATTI-169
MANPREET SINGH-151
GOLDI-137
ATUL VIKAS-159
KUMAR ASHISH-171
RAVI KUMAR- 136

2. SOUTHWEST AIRLINES
If you get your passengers to their destinations when they
want to get there, on time, at the lowest possible fares, and
make darn sure they have a good time doing it, people will fly
your airline.
You put your employees first. If your employees are treated
right , they will treat your customers right, your customers will
come back, and that’s what makes your shareholders happy.
MISSION
The mission of Southwest Airlines is dedication to the highest
quality of customer service delivered with a sense of warmth,
friendliness, individual pride, and company spirit. It primarily
provides short haul, high-frequency, point-to-point, low-fare air
transportation service among 58 cities (59 airports) in the
United States.

3. Incorporated in Texas in U.S. by Herb Kelleher
and Rollin king in 1971
 Commenced customer service with 3 boeing
737 aircraft
 Now operates more than 500 boeing 737
aircraft
 Operate more than 3300 flights a day
 35000 employees engaged
 The United States’ most successful low-fare,
high frequency, point-to-point carrier
 Known as a “discount airline” since 1973


5. For the 12th year in a row, FORTUNE
magazine recognized Southwest Airlines in
its annual survey of corporate reputations in
2008.
 2003 Selected as “AIRLINE FOR THE
YEAR”
 2007 included in top 100 most innovative
technology organization
 First airline to establish a home page on
internet
 Ranked number one in customer service
 36 consecutive year of profitability


6. Defined as:
“art of motivating a group of people to act towards achieving
a common goal”
According to HERB KELLEHER





Leadership is a way of life, culture, desire and commitment
Leadership is the job of every employee, not just upper level
management
Every employee should have the ability to ascertain situations
and be able to act on their own decision
Employees should be able to lead other employees to make
decisions
He does not rule over his employee but rather, rules with his
employees

7. .
• Work should be fun ...it can be play . . .
Enjoy it.
humour • Both at workplace and inside the plane
• Work is important ...don’t spoil with
seriousness.
altruism • Welfare of people comes first
luv
• People are important...each one makes
a different.
• Employee and customer commitment

8. SUCCESS IS HOW HIGH YOU BOUNCE WHEN YOU HIT
BOTTOM
WHY IT IS SUCCESSFUL ?

9. WHY IT IS SUCCESSFUL ?
Competitive advantage
Internal customers
Management style
Leadership
Work-culture
Family spirit
Trust

10. •Open sharing of information
Training
Collective bargaining
Flexibility
Discounted stock purchase
Creative spirit

11. WORK
CULTURE
COMPETITIVE
ENVIRONMENT
LEADERSHIP
• People consider it as crusade instead of
business.
• Most glowing star in southwest policy.
• Eagerness to be at the top.
• Challenges top competitors as US
AIR,UNITED, DELTA
• CEO HERB KELLEHER played major
role with his unique mgmt style.
• Team of PARKER, COLLIN to handle .

12. 4
TRUST
OPEN SHARING OF
INFORMATION
CREATIVITY SPIRIT
• Trust of customers declared it as most
admired airlines and company.
• Respects ideas of employees.
• Committee of managers, employee
interaction.
• Respect for sense of humor.
• Compatible attitude of learning.

13. • Employee
satisfaction
• Customer service
• Low fares
• Stable profitability
• Scheduled service
• Leadership
• No international
flight.
• Carry small amout
of freight and cargo.
• Inconvenience to
business customers
Strengths
Opportunity
• Operate At
International Level
• Focus On Popular
Destinations
Weakness
Threats
• Government
regulations and
restrictions
• Fluctuation in gas
and oil prices

15. 
Integrated Low Cost/Differentiation
Strategy
Use a single aircraft model (Boeing 737)
Use secondary airports
Fly short routes
Low cost meals
15 minute turnaround time
No reserved seats
No travel agent reservations

16.  Fuel
hedging

Purchased fuel options for years in advance to smooth
out fluctuations in fuel costs
 Substantially increased its hedging in 2001 in
response to projections of increased crude oil prices
 Advantaged after Sep. 11, 2001 attack, the oil shock
from Iraq War, and Hurricane Katrina
 Operated

only one model of aircraft
Boeing 737, medium range-narrow body commercial
passenger jet aircraft
 Easy to replace parts and ground support equipment

17. PRICE ELASTICITY OF DEMAND
The percentage change in quantity demanded (Q)
that occurs in response to a percentage change in
price (P)

18.  The
firm identifies different consumer groups, in
the market, each with a different demand curve.

Southwest Airlines recognizes that any given flights
has different types of travelers

Business travelers vs. Vacation travelers
 To
maximize profit, the firm sets a price for each
group by equating marginal revenue and
marginal cost.

19. Southwest Airlines uses third-degree price
discrimination to fill the plane with travelers in the
most profitable way
 Depending on the price of elasticity of demand for
tickets
 Charge a higher price for business travelers who
have relatively inelastic demands and vice versa
 Employee and customer satisfaction
